Preferred stock always has the right to vote

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1. Corporate dividends:

[A] are always source of tax-free income for individual investors.

[B] are taxed at the personal level even though they are paid from aftertax income.

2. The owner of preferred stock:

[A] is entitled to a distribution of income prior to the common shareholders.

[B] is always guaranteed voting rights similar to a common shareholder.

3. The market in which new securities are originally sold to investors is called the _____ market.

[A] secondary

[B] primary

4. Preferred stock always has the right to vote.

[A] True

[B] False

5. A market participant who buys and sells securities from inventory is called a dealer.

[A] True

[B] False

Reference no: EM131487446

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